In 2011, Congress revised the federal estate tax rules, setting the individual lifetime combined estate and gift tax exemption at $5,000,000 (pegged to inflation).  From 2013 to the present, any individual with a gross estate exceeding the exempt amount is taxed at a flat rate of 40%.  Below is a list of the exemption amounts by year:

  • 2011 – $5,000,000
  • 2012 – $5,120,000
  • 2013 – $5,250,000
  • 2014 – $5,340,000
  • 2015 – $5,430,000

Additionally, the federal estate tax exemption is portable, meaning that married couples can claim a combined exemption of $10,860,000 in 2015; so long as certain administrative and tax procedures are followed when the first spouse passes away.

To see the Oregon estate tax rates, please click here.

Federal Gift Tax:

In 2014, any individual may give up to $14,000 to any other individual without having to file a gift tax return.  You may make gifts above $14,000 in a year, but any amount above$14,000 will be deducted from your lifetime combined estate and gift tax exemption.

This topic can be quite complicated.  If you have any questions or would like to a complimentary estate planning consultation, please call us at 503.641.6262.

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